2 Feb 2021 07:00
PRESS RELEASE 2 February 2021
WENTWORTH RESOURCES PLC("Wentworth" or the "Company")
Operational Update and Reserves Update
Wentworth Resources plc (AIM: WEN), the independent, Tanzania-focused natural gas production company, announces the following operational update and results of the year-end Competent Persons Report for 2020.
Highlights
· To date, there have been zero reported cases of COVID-19 at Mnazi Bay. Employee safety remains a top priority and robust precautionary measures remain in place
· Wentworth's share of gross 2P Reserves as at 31 December 2020 estimated by RPS Group to be 142.2 Bcf (23.7 mmboe) with a post-tax NPV10 of $116.6 million
· Debt free with $17.8 million cash on hand as at 31 December 2020 (unaudited)
· Production guidance for full-year 2021 set at 65-75 MMscf/day (gross)
Mnazi Bay Operations and Operational Outlook
· Repairs to the MB-2 flowline were completed on time on 9 December 2020 and the well has continued to perform in line with expectations
· A planned slickline campaign commenced on 22 January 2021 which primarily includes a continuation of the Mnazi Bay Partners' ongoing pressure monitoring programmes
Reserves Update
RPS Group, an independent third-party reserves evaluator, performed a Competent Persons Report ("CPR") for the Company with an effective date of 31 December 2020. The updated full field 2P gross reserves for Mnazi Bay are 445.3 Bcf (90.8 Bcf being Wentworth's share of net reserves). This compares to 468.9 Bcf as at 31 December 2019. As full-year 2020 gross production totaled 23.9 Bcf (gross), this demonstrates a minimal change attributable to technical and economic factors to previous reserves estimates.
The NPV10 after tax for the 2P reserves as at 31 December 2020 is $116.6 million net to Wentworth. This compares to $118.6 million for 2019. It should be noted that during 2020, Wentworth increased its cash position to $17.8 million (unaudited), while distributing $3.2 million in dividends, compared to cash of $13.5 million as at 31 December 2019.
Reserves Summary for Mnazi Bay | ||||||
as at December 31, 2020 | ||||||
| Field | Wentworth 31.94% WI | ||||
| Gross (1) Reserves | Gross (1) Reserves | Net (2) Reserves | |||
Reserves Category | Sales Gas | BOE (MMbbl) | Sales Gas (Bscf) | BOE (MMbbl) | Sales Gas | BOE |
(Bscf) | (Bscf) | (MMbbl) | ||||
Proved Developed Producing (PDP) | 90.4 | 15.1 | 28.9 | 4.8 | 24.9 | 4.1 |
Proved Developed | 100.8 | 16.8 | 32.2 | 5.4 | 27.8 | 4.6 |
Total Proved Developed (PD) | 191.2 | 31.9 | 61.1 | 10.2 | 52.7 | 8.7 |
Proved Undeveloped | 48.8 | 8.1 | 15.6 | 2.6 | 2.6 | 0.5 |
Total Proved (1P) | 240.0 | 40.0 | 76.7 | 12.8 | 55.3 | 9.2 |
Proved + Probable (2P) | 445.3 | 74.2 | 142.2 | 23.7 | 90.8 | 15.1 |
Proved + Probable + Possible (3P) | 637.8 | 106.3 | 203.7 | 34.0 | 233.5 | 20.6 |
⁽¹⁾ Gross Reserves are Company Working Interest Share of Total Field Reserves | ||||||
⁽²⁾ Net Reserves are calculated as the product of Company Gross Reserves and the ratio of Company net revenue to Company WI share of field gross revenue | ||||||
Wentworth Resources Working Interest Reserves for Mnazi Bay | ||||||||||
as at December 31, 2020 | ||||||||||
RPS Forecast 2021-01-01 | ||||||||||
| NPV Before Tax | NPV After Tax | ||||||||
Reserves Category | Million US$ | Million US$ | ||||||||
| 0% | 5% | 10% | 15% | 20% | 0% | 5% | 10% | 15% | 20% |
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PROVED |
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Producing | 50.1 | 46.3 | 42.8 | 39.7 | 36.9 | 45.8 | 42.6 | 39.5 | 36.7 | 34.2 |
Non Producing | 9.6 | 8.8 | 8.1 | 7.5 | 7.0 | 8.9 | 8.1 | 7.5 | 7.0 | 6.5 |
Undeveloped | 70.9 | 54.1 | 42.1 | 33.4 | 26.9 | 56.9 | 42.0 | 31.4 | 23.8 | 18.2 |
Total Proved | 121.0 | 100.4 | 85.0 | 73.1 | 63.8 | 111.6 | 92.7 | 78.4 | 67.5 | 58.9 |
Probable | 83.4 | 56.7 | 41.4 | 32.5 | 27.1 | 75.9 | 51.9 | 38.1 | 30.0 | 25.1 |
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PROVED + PROBABLE | 204.4 | 157.1 | 126.4 | 105.6 | 90.9 | 187.4 | 144.5 | 116.6 | 97.5 | 84.0 |
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Possible | 74.4 | 52.3 | 39.6 | 32.1 | 27.4 | 67.8 | 47.8 | 36.4 | 29.5 | 25.1 |
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PROVED + PROBABLE + POSSIBLE | 278.8 | 209.3 | 166.1 | 137.7 | 118.2 | 255.2 | 192.4 | 152.9 | 127.0 | 109.2 |
The full CPR is available on the Company's website: www.wentplc.com/investors/documents.
Katherine Roe, CEO, commented:
"The results of our 2020 Competent Persons Report show the continued strong technical fundamentals underlying the Mnazi Bay field and its potential to generate strong, long-term free cash flows that form the basis of our sustainable dividend policy. We look forward to continuing to use our fiscal discipline and financial performance to create further value for shareholders."
- Ends -
Enquiries: Wentworth |
Katherine Roe,Chief Executive Officer |
katherine.roe@wentplc.com+44 (0) 7841 087 230 |
Stifel Nicolaus Europe Ltd | AIM Nominated Adviser & Joint Broker Callum StewartAshton ClanfieldSimon Mensley | +44 (0) 20 7710 7600 |
Peel Hunt LLP | Joint Broker Richard CrichtonAlexander Allen | +44 (0) 20 7418 8900 |
FTI | Communications Adviser Sara Powell Ben Brewerton | +44 (0) 20 3727 1000 |
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Notes and Glossary
These assessments are made in accordance with the standards defined in the Petroleum Resources Management System (Revised 2018) sponsored by SPE, WPC, AAPG, SPEE, SEG, SPWLA, and EAGE.
Cameron Snow, Head of Subsurface and Business Development, is a geologist with 15 years' experience across North America, South America, Africa, and Europe. He holds a BS in Geology from North Carolina State University, an MS in Geology from Utah State University, a PhD in Geological and Environmental Science from Stanford University, and an MBA from Imperial College London. Mr. Snow has read and approved the technical disclosure in this regulatory announcement.
Bcf/Bscf | Billion standard cubic feet |
BOE | Barrels of oil equivalent |
MMbbl | Million barrels |
MMboe | Million barrels of oil equivalent |
NPV | Net present value (at a specified discount rate and specified discount date) |
Gross Reserves | Reserves volumes before deductions for royalty |
Net Reserves | Reserves volumes after deduction of royalty |
1P | Proved Reserves, those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations. |
2P | Proved + Probable Reserves, those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves |
3P | Proved + Probable + Possible Reserves, those additional reserves which analysis of geoscience and engineering data suggest are less likely to be recoverable than Probable Reserves. |
Reserves | Quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. |
About Wentworth Resources
Wentworth Resources plc (AIM-listed: WEN) is a leading, domestic natural gas producer in Tanzania with a core producing asset at Mnazi Bay in the onshore Rovuma Basin in Southern Tanzania.
The power demand base in-country is growing and with an ambitious universal energy access target set by the Government for 2030, Wentworth has a vital role to play in increasing access by ensuring a reliable, affordable and growing supply of natural gas into the local market.
In 2019, Wentworth launched its dividend policy and remains committed to responsible growth that maintains returns for shareholders.
Inside Information
The information contained within this announcement is deemed by Wentworth to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 ("MAR"). On the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.